All posts tagged banks

Banks are partnering with the federal government to try to beat back the growing problem of family and paid caregivers bilking their vulnerable elderly charges.

At a hearing today, the Senate Special Committee on Aging is taking a look at ways to better prevent elder financial exploitation. A new Government Accountability Office report being released today looks at current prevention efforts by the federal government and several states.

The government is calling on banks to take on a bigger role, mainly by having the Consumer Financial Protection Bureau “develop a plan to educate banks nationwide on how to identify and report possible elder financial exploitation; and develop and and disseminate information for banks on the circumstances under which they are permitted, under federal privacy laws, to release relevant bank records to law enforcement and [Adult Protective Services] agencies.”

Already, the U.S. Administration on Aging and Wells Fargo Advisors, which is Wells Fargo’s brokerage unit, have agreed to work together on training initiatives, a bank spokeswoman says.

Expect more details on how bank tellers will start looking out for big withdrawals by elderly customers, and other unusual financial moves, as those initiatives get off the ground. Read More »

Today, the trustee in charge of liquidating MF Global posted an update to itswebsite with a message to former customers of the bankrupt company who are wondering when they’re going to get access to their funds again.

The bottom line: The trustee doesn’t know.

Customers who had commodities and securities trading accounts at MF Global had their accounts frozen on Oct. 31, when the company declared bankruptcy. Complicating the issue was the fact that MF Global had an apparent shortfall in funds that were supposed to be segregated for customers.

Since then, the trustee for MF Global has found new clearinghouses to take on the 17,000 or so commodities accounts with open trades that the company held and is still trying to find a company to take on its 400 or so active securities accounts. Read More »

The Credit Union National Association reports that more than 650,000 customers have transferred some $4.5 billion from big banks to credit unions in the last four weeks. Credit unions are not-for-profit financial cooperatives that often charge lower fees than giant banks – and they appear to be benefiting from the backlash against debit-card fees and other nuisance charges that some of the biggest commercial banks tried imposing earlier this fall.

And, while credit unions are not-for-profit, they’re certainly not being passive in the face of opportunity. They’ve been making an aggressive marketing push to turn consumers who are seething with anger into new customers – as these messages in New Jersey, Louisiana and Washington state show.

The money isn’t just spontaneously showing up on the doorstep of the credit unions. They’re actively grabbing for it. There’s nothing wrong with that, mind you, but it’s a reminder that these not-for-profits aren’t completely selfless. They’re marketing organizations, too. Read More »